Contrasting NextMart (OTCMKTS:NXMR) & RideNow Group (NASDAQ:RDNW)

NextMart (OTCMKTS:NXMR) and RideNow Group (NASDAQ:RDNW) are both retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, valuation, earnings, profitability and risk.

Volatility and Risk

NextMart has a beta of -0.73, indicating that its share price is 173% less volatile than the S&P 500. Comparatively, RideNow Group has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.

Earnings and Valuation

This table compares NextMart and RideNow Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NextMart	N/A	N/A	N/A	N/A	N/A
RideNow Group	$1.21 billion	0.19	-$78.60 million	($2.80)	-2.13

NextMart has higher earnings, but lower revenue than RideNow Group.

Profitability

This table compares NextMart and RideNow Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NextMart	N/A	N/A	N/A
RideNow Group	-9.35%	-223.85%	-4.01%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for NextMart and RideNow Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NextMart	0	0	0	0	0.00
RideNow Group	1	3	1	0	2.00

RideNow Group has a consensus price target of $4.00, indicating a potential downside of 32.89%. Given NextMart’s higher possible upside, analysts plainly believe NextMart is more favorable than RideNow Group.

Insider and Institutional Ownership

66.1% of RideNow Group shares are owned by institutional investors. 56.4% of NextMart shares are owned by insiders. Comparatively, 54.7% of RideNow Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

About NextMart

NextMart, Inc. does not have significant operations. Previously, it was involved in the art event and art media direct marketing; art-themed products design and marketing; and art themed real estate development businesses. The company was incorporated in 1972 and is based in Scottsdale, Arizona.

About RideNow Group

RumbleOn, Inc. primarily operates as a powersports retailer in the United States. It operates in two segments, Powersports and Vehicle Transportation Services. The Powersports segment provides new and pre-owned motorcycles, all-terrain vehicles, utility terrain or side-by-side vehicles, personal watercraft, snowmobiles, and other powersports products. It also offers parts, apparel, accessories, finance and insurance products and services, and aftermarket products, as well as repair and maintenance services. The Vehicle Transportation Services segment provides asset-light transportation brokerage services facilitating automobile transportation. The company was formerly known as Smart Server, Inc. and changed its name to RumbleOn, Inc. in February 2017. The company was incorporated in 2013 and is based in Irving, Texas.